Retailers dragging their feet on reducing fuel prices

27 July 2008

The RAC has fired a broadside across oil companies and Perth’s fuel retailers saying motorists are paying nearly 14 cents a litre too much for diesel in the Perth metropolitan area.
 
RAC’s Executive Manager of Member Advocacy David Moir accused retailers of not passing on wholesale price reductions to motorists.

“The retailers have been dragging their feet in reducing petrol prices over the past week and now they are doing the same with diesel.

"The current retail margin on diesel is tracking at about 13 cents a litre and we can not see any reason why this should be any more than the average 4- 5 cents a litre margin the retailers charge for ULP,” Mr Moir said.

Mr Moir also accused the wider oil industry of cashing in on diesel.

“The benchmark industry price for diesel has dropped almost US$30 barrel on the international market since the beginning of July and if this was passed on to the retailers it could add a further six cents a litre reduction in the price of diesel at the bowser,” Mr Moir said.

Download the release (pdf)